Share markets were volatile over the quarter, driven partly by Japanese currency movements and concerns about the strength of the US economy.
The good news, though, is our pre-mixed investment options all delivered positive returns for Hostplus pension members over the quarter.
View returns for all Hostplus options
And, in another positive for members, we’ve added three new investment options to our range, giving members even more low-cost investment options to choose from.
Check out our new investment options
Listen to Greg Clerk, Deputy Chief Investment Officer, provide an update on our investment performance.
Hostplus’ Balanced option is still a top performer over 10 years.
Our Balanced option, the most popular option for Hostplus pension members1, returned 3.34% over the quarter ending 30 September 2024. All other pre-mixed options delivered positive returns as well.2
| Pre-mixed investment option returns to 30 September 2024 | ||||
|---|---|---|---|---|
| Investment option | 3 months | 1 year | 5 years p.a. | 10 years p.a. |
| Defensive | 2.72% | 7.93% | - | - |
| Indexed Defensive | 4.27% | 10.37% | - | - |
| Socially Responsible Investment (SRI) - Defensive | 2.67% | 8.20% | - | - |
| Capital Stable | 2.76% | 8.25% | 3.93% | 5.11% |
| Conservative Balanced | 3.31% | 10.83% | 5.98% | 7.15% |
| Socially Responsible Investment (SRI) - Balanced | 3.70% | 13.28% | 8.45% | - |
| Balanced | 3.34% | 11.89% | 8.38% | 9.44% |
| Indexed Balanced | 5.11% | 20.43% | 8.47% | 8.93% |
| Growth | 4.16% | 15.46% | 9.38% | 10.37% |
| High Growth | 4.81% | 18.44% | - | - |
| Indexed High Growth | 5.40% | 24.51% | - | - |
| Socially Responsible Investment (SRI) - High Growth | 5.01% | 20.75% | - | - |
| CPIplus | 1.58% | 5.98% | - | - |
Source: Hostplus data as of 30 September 2024. Returns are net of investment fees and costs. Admin and other fees apply. Past performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a super fund.
The positive news for Hostplus members in our Balanced option? The option is ranked the top-performing balanced option in Australia over 10 and 15 years to 30 September 2024, according to SuperRatings.
Source: SuperRatings Pension Fund Crediting Rate Survey - SRP50 Balanced (60-76) Index, September 2024. Returns are net of investment fees and costs. Admin and other fees apply. Past performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a superannuation fund.
Introducing our three new investment options
In October 2024, we added three new diversified indexed investment options that are mostly ‘passively managed’. They aim to track the returns of the markets in which they invest and minimise associated fees and costs.
Indexed Growth has a high allocation to shares (approximately 90%), and a smaller allocation to bonds and cash. It’s designed for people who can tolerate short-term market fluctuations, with the aim of delivering moderate long-term returns (3.0% p.a. above inflation over 20 years).
Indexed Conservative Balanced has a roughly equal allocation to shares (55%), and bonds and cash (45%). It’s designed to be less vulnerable to short-term market fluctuations, while aiming to deliver modest long-term returns (3.0% p.a. above inflation over 20 years).
Indexed Capital Stable has a lower allocation to shares (37%) and a higher allocation to cash and bonds (63%). It's designed to be more stable over the short term, while aiming to deliver modest long-term returns (2.5% p.a. above inflation over 20 years).
| Investment option | Investment style | Level of investment risk* | Growth/ defensive allocation# | Investment time frame^ |
|---|---|---|---|---|
| Balanced (where most Hostplus pension members invest) | Focused on delivering the best net returns for a given level of risk | Medium to high | 76% growth / 24% defensive | 5 years + |
| Indexed Growth | Focused on minimising investment fees and costs | High | 90% growth / 10% defensive | 7 years + |
| Indexed Conservative Balanced | Focused on minimising investment fees and costs | High | 55% growth / 45% defensive | 5 years + |
| Indexed Capital Stable | Focused on minimising investment fees and costs | Medium | 37% growth / 63% defensive | 5 years + |
*The level of investment risk is based on an industry-wide Standard Risk Measure. It shows the number of expected negative annual returns over a 20-year period.
#How the option is invested between growth assets (higher risk/higher return, like shares) and defensive assets (lower risk/lower returns, like cash).
^Indicates the recommended minimum number of years you should keep your super invested in this option.
The way your pension is invested could make a big difference to how your money grows. But how do you decide which investment option is right for you? Learn more about choosing the right investment options.
Get help when you need it
Our superannuation advisers can help you understand how your pension is performing. If you’re a Hostplus member, you can receive personalised advice about your account at no extra cost. If you already have an adviser, they can also provide advice on your account.
Contact us on 1300 303 188, email us or book a callback today.
1. As at 30 September 2024
2. Source: SuperRatings Pension Fund Crediting Rate Survey – SRP50 Balanced (60-76) Index, September 2024.